Price performance and trading volumes
Gold posted its strongest returns since May 2021, ending the month more than 6% higher at US$1,910/oz.4 ?Prices rallied throughout February as a flight-to-quality among investors outweighed higher nominal yields and a marginally positive dollar. Elevated market volatility and general uncertainty provided the backdrop for this as the Ukrainian crisis unfolded.?
Daily trading averages in February reduced slightly from the start of the year, decreasing to US$136bn from US$145bn the month prior,5 ?despite the rally in gold prices. Net long positioning, via the recent Commitment of Traders (COT) report for COMEX gold futures, initially declined before steadily rising to 904t (US$56bn) – the highest level since July 2020 – as gold price performance was robust.6?
For more details, see Gold Market Commentary, February 2022.
Inflows in North America and Europe outweighed outflows from Asia?
- North American funds had inflows of 21.3t (US$1.3bn, 1.2%)
- European funds had inflows of 21.4t (US$1.3bn, 1.4%)
SPDR? Gold Shares and iShares Gold Trust in the US and iShares Physical Gold in the UK drove inflows, partially offset by outflows from Huaan Yifu Gold and Bosera Gold Exchange in China and Xtrackers Physical Gold in Germany
- In North America, SPDR? Gold Shares had inflows of 11.3t (US$711mn, 1.2%), while iShares Gold Trust gained 8.1t (US$483mn, 1.7%)
- In Europe, iShares Physical Gold had inflows of 8.3t (US$511mn, 4.0%), while Xtrackers Physical Gold (GBP) lost 2.5t (-US$148mn, -75%)
- In Asia, Chinese ETFs Huaan Yifu Gold, Bosera Gold Exchange, and E Fund Gold had outflows of 2.7t (-US$166mn, -9.8%), 2.5t (-US$149mn, -12.0%), and 1.6t (-US$97mn, -14.8%), respectively.?
Gold ETFs continued to rebound in 2022 amid a flight-to-quality in North America and Europe despite selling within Asian funds
- In 2021, gold ETFs saw global outflows of US$9.1bn (-173t) as large North American funds lost assets in line with lower gold prices, while low-cost8?funds and all other regions remained mostly positive
- Conversely, this year has been marked with strong inflows into US funds, in addition to continued growth in European ETFs. On the other hand, Asian gold ETFs have experienced outflows of over US$1.0bn (-12.4%), compared to inflows of close to US$1.5bn (20.4%) last year?
- After?growing by 45% (US$3.7bn, 63t) in 2021 with consistent inflows independent of gold price behaviour, low-cost gold ETFs remained positive adding US$918mn (15.7t, 7.7%) year-to-date.?